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China Satellite Communications Sees 26.9% Profit Jump in 09BEIJING, Apr 01, 2010 (SinoCast Daily Business Beat via COMTEX) -- China Satellite Communications Corporation, a state-owned satellite operator, is expected to notch a 26.9% leap in total profits for 2009, disclosed people familiar with the matter today. Operating revenue is likely to grow 25% from 2008, according to a source, attributing the shinning performance mainly to a business integration with China Aerospace Science and Technology Corporation (CASC) nearly a year ago. China Satellite Communications was merged by CASC, a state-owned conglomerate, on April 10, 2009, after handing over its infrastructure telecom operation to China Mobile as part of a government-initiated telecom industry reshuffle. "Major businesses are contributing more to the total revenue after the business integration," pointed out the source, "of all the revenue, 97.4% comes from satellite space segment operation and geographic information & location based services (LBS)." The Beijing-based company was reborn as a CASC core unit of satellite operation-related services after the business consolidation. China Satellite Communications sees total assets jump 76.28% by the end of 2009 from the beginning of the business consolidation, according to the source. In a working conference held earlier, CASC mapped out a new development strategy for the aerospace technology operation, listing aerospace services as one of the four major businesses and aiming to expand the satellite operation services to more than CNY 10 billion. In response to the expansion plan by its parent, China Satellite Communications worked out a development strategy for 2010-2015, claiming that it would focus on satellite space segment operation, geographic information & LBS, together with satellite ground segment operation to make it self an leader in the global satellite-based integrated information service market. CASC has introduced strategic investors for the new subsidiary to give the company a boost on its way to an industry outrunner. On December 29, 2009, China Satellite Communications held the first meeting of shareholders, board of directors, and board of supervisors, marking a breakthrough in the long-awaited joint-stock reform. The company has made great progress in talent team expansion and enterprise culture integration in the past year, paving the way for a further expansion in the satellite operation market, according to an executive for China Satellite Communications. In the year, the satellite operator carried out mergers and acquisitions for strategic resources, strengthened production and launch of satellites, and constructed supporting facilities on the ground, improving its competitiveness and services to a large extent. (USD 1 = CNY 6.83) Source: www.enet.com.cn (April 01, 2010) |